For a Firm That Presently Has a Current Ratio of 2.0

question 8

Multiple Choice

For a firm that presently has a current ratio of 2.0, the effect on this ratio of paying a current liability is that it:

• A)raises the current ratio.
• B)lowers the current ratio.
• C)doesn't affect the current ratio.
• D)depends on the amount paid.

---

Definitions:

Critical Thinking

The capacity to impartially assess and appraise a matter with the goal of making a decision.

Critical Thinking Characteristics

Traits such as analysis, evaluation, inference, and explanation that are essential for reasoning through problems and making informed decisions.

Patient Care

The services and actions performed by health professionals to support the health and well-being of patients.

Established Way

A method or procedure that has been widely accepted and used over time because it is proven to be effective.